Can I Negotiate the Price of a New Car?

 

Buying a car is an exciting experience. But if you don’t prepare yourself beforehand it can be somewhat overwhelming. So, you've done all necessary research, chose the make and model of the car that you want to buy, and you're ready to drive off in a brand new vehicle. Yet, there's one question that frequently comes up when it’s time to buy a new car: Can I negotiate the price of a new car? The short answer is yes!

In this blog post, we'll guide you through a few proven tips of negotiating the price of a new car in Australia and how you can reduce the price of your next new car purchase. Let’s get into it!

The New Car Buying Process

Before we delve into ways you can negotiate a lower price for a new car, it's fundamental that you understand the typical new car purchasing process. At the point when you step into a new car dealership, the retail cost, otherwise known as the Manufacturer's Suggested Retail Price (MSRP), is noticeably shown on the vehicle's window. This cost is only a beginning stage, don’t think that the price shown is what you have to pay and should pay.

All Car dealerships make money by selling cars, with that said, in order to be successful they need to have a room for negotiation in order to sell their cars and remain solvent. In any case, how much you can negotiate can fluctuate from one dealership to the next, and it often comes down to the demand of that particular vehicle in the area and the season.

Planning is Vital

To negotiate a lower price on a new car, it's vital to be completely ready. Here are a few things you should do before you set foot in a dealership to buy a new car.

1. Do all necessary Research:

Research the make and model you're keen on. Look at prices from different dealerships. Get a feeling of the honest evaluation for the vehicle. There are many car evaluation websites online that can tell you how much you should pay for a car. This will help you greatly when it comes time to negotiate.

2. Set Your Financial plan:

Find out the amount of money you can spend on the vehicle. Consider factors like your initial upfront cost, maintenance cost, insurance costs and most importantly petrol costs.

3. Get Pre-Approved Finance:

Having a pre-approved car finance from a bank or credit association can give you serious negotiating power. Think about it, if you have a set limit you are only allowed to spend you can use this as an advantage when talking to dealers.

4. Show restraint:

Timing is vital. The end of month, quarter, or year might offer better opportunities to negotiate prices as dealerships try to meet sales targets.

5. Walk Away to Prove a Point:

One of the best ways to negotiate a lower price on a new car is to ready and willing to leave and walk away if they are not willing to budge on the advertised price.

New Car Negotiating Strategies

Now that you're completely ready for what’s to come, it’s time to start visiting new car dealerships and negotiate a better price of your dream vehicle. Here are a few things to keep in mind:

1. Start with Respectful Haggling:

Start your exchange with a car dealer by communicating your interest in a particular vehicle that they are selling. Tell the sales rep that you're willing to buy however only at the right price.

2. Don’t Speak About Your Payment Limit Initially:

Some Car Dealers might want to get some information about your month to month spending plan to appropriately change a price for the car you are looking to buy. Don’t give this information away initially as it may reduce your ability to negotiate later down the line.

3. Be Patient:

Negotiating can take time, and it's normal for car dealer to leave you hanging up as they gain approval for the price that you want to buy the car for. Be patient good things take time.

4. Be Prepared to Leave:

On the off chance that the dealership isn't willing to meet your ideal cost, make sure to leave. Some of the time, this is the best method for getting a more ideal price. You would be surprised when they get back to you with a more alluring deal.

5. Use the Power of Silence:

Sometimes, keeping silent can be your best negotiating power. After giving a dealer your best price, hang tight for their response. If they refuse to take up your deal keep silent. They may come back with a better deal if they have no other interested buyers.

6. Consider Seller Additional items:

New Car Dealerships frequently offer additional items like warranties, finance and accessories. Taking up some of these offers is a proven and great way to lower the advertised price of the car.

7. Be Polite:

Remember Car Dealers are simply going about their business of doing their primary job. Being polite during negotiation can go a long way to getting a better and cheaper price.

8. Get Everything in Writing:

When you and the dealer have settled on an agreed price, be sure to get all the details, terms and conditions in writing.

Closing the Deal

After successfully negotiating a better price, you just have a few little things to do to complete the buying process.

1. Review the Paperwork:

It is essential that you read every one of the documents you receive from a Dealer before signing. Make sure the price agreed upon is reflected in the documents.

2. Double Check Any Fees:

All dealers will have different fees, make sure you go over your documentation to check all the fees are as agreed upon and the correct amount.

3. Don’t Rush:

Take as much time as necessary during the document review process. Don’t feel pressured to sign right away. You need to ensure everything is correct.

4. Take a Final Test Drive:

Prior to signing and finalising the deal, do one final test drive to guarantee everything is good to go and what you’re looking for.

5. Enjoy Your New Car:

When the desk work is finished and you've made your down, you can now drive off in your new Car. Congratulations!

Final Word,

Many people think you can only negotiate the price of used cars but in reality you can negotiate the price of new cars as well if you research and understand the market correctly. Remember patience is the key to negotiating a better price, prepare yourself and don’t be afraid to walk away if the deal is not right.

We hope you enjoyed reading this article. To read more articles like this, please visit the Shop for Cars latest news page here.

About Shop for Cars,

Shop for Cars is Australia’s first car dealership-only online classified. Shop for Cars brings you the best quality new and used vehicles from trusted motor dealers Australia wide. Shop for Cars currently has over 12,500 cars listed for sale all from licensed Motor Vehicle Dealers ONLY.

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DISCLAIMER: This is all based on opinion please research and consult with all relevant parties to make the best lending decision.